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Parimutuel-powered apps are growing because they feel familiar to sportsbook fans while operating with a completely different engine under the hood. Instead of the house setting odds and taking the other side, these products lean on pooled or peer-to-peer mechanics that can sit outside the usual “regulated online casino” box in some jurisdictions.
That structural difference has become a magnet for founders, investors and curious users who want more markets, more flexibility and fewer walls. The next five years look like a land grab, especially as U.S. regulators and incumbents argue over where event-style trading, peer-to-peer exchanges and parimutuel concepts should live.
Trend 1: ‘Betting, but with a trading screen’
Sports fans have grown comfortable with real-time pricing, cash-outs and live markets, so apps that look and behave like trading platforms fit right in. Prediction markets have helped normalize the idea that users can buy and sell outcome contracts rather than place a single fixed wager. This pulls in users who like to manage positions midgame. Massive event spikes have also acted as free marketing; platforms reported blockbuster Super Bowl-related trading volume that made many people look twice.
This “trader vibe” also attracts venture money. Novig, for example, has pitched a peer-to-peer, order-book approach built for sports traders. It recently raised a sizable round at a reported $500 million valuation, signaling real belief in the category’s upside.
Trend 2: Regulatory pressure pushes innovation
Traditional online sports betting is state-by-state, license-heavy and expensive to enter. That reality nudges operators toward structures that present themselves as marketplaces, exchanges or pooled models rather than house-banked gambling.
Legal fights over event contracts and “who regulates what” have put this sector on the front page. The debate itself is a growth driver because it keeps the category in the news and encourages more experimentation with compliance-first design, such as geofencing, age checks and clearer fee disclosures.
Trend 3: Parimutuel’s long-standing approval
Parimutuel wagering is not new. Horse racing has used it for generations, and modern advance deposit wagering (ADW) apps are essentially the mobile version of that model. The horse racing industry also provides a reality check on scale. Total U.S. wagering on horse racing in 2024 was reported at about $11.27 billion, showing the pooling concept can support a large, durable market even in a mature category.
This established framework is already being adapted for new audiences. Platforms like Horseplay have entered the market by applying parimutuel mechanics to casino-style games, allowing them to operate legally in states like California and Florida. Similarly, the recent launch of the GiddyUp platform demonstrates how horse racing results can power real-money gaming in 17 states at launch, providing a regulated alternative to traditional slots.
The outlook for 2031
How big could this niche get over the next several years? Two things can be true at once: The broader betting universe is massive, and the parimutuel-powered slice can remain “niche” while becoming very meaningful. Research firms pegged U.S. sports betting revenue at roughly $17.9 billion in 2024 and project growth toward the low $30 billion range by 2030, meaning the overall pie is expanding fast.
If parimutuel-style apps—including peer-to-peer exchanges and contract-style trading—capture even a small single-digit share of that growth, the category could plausibly reach the “several billions per year” handle-equivalent range within five years. The ceiling rises if more states explicitly allow these formats or if major brands continue launching event-style products in non-sportsbook states.
